WALL STREET, NEXT WEEK

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WALL STREET,   NEXT WEEK: MAY 7, 2001
FINANCIAL ASTROLOGY FOR THE SUCCESSFUL INVESTOR AND TRADER

1. MAY MARKETS
2. UP STARS/DOWN STARS
3. ASTRONUT
4. QUOTES
5. ON THE WEB
6. LETTERS

From April 2 WSNW:
“Just as many investors may be upset about not selling more NASDAQ stocks last March, next year they are likely to be upset about NOT having bought more quality Nasdaq stocks this March.”
In April, U.S. stocks finished their best month in almost a decade:, the Nasdaq gained 15 percent, the Wilshire 5000 index rose 8.1%, S&P 500 rose 7.7% percent  and the Dow advanced 8.7%!

“The U.S. needs to speed up its tax cuts, the European Union should lower interest rates and Japan must overhaul its banks to head off a global economic slump. There is no need to panic, no need to be overly pessimistic. pre-emptive early policy responses from the U.S., Japan and Europe are needed. We are indeed now living in a globalized world, where the slowing down is absolutely interconnected.”
Horst Koehler, IMF Director
HW: We agree about Europe and Japan, but as for the US, this is not the best policy. We need more R&D corporate investment tax breaks, especially in successor energy, and give homeowners $500 to $1000 tax credit for new energy efficient appliances and insulation. Just watch the US economy perk up then. We need 21st century leadership rather than 19th and 20th century technological solutions.  

HOPE FOR THE BEST; PREPARE FOR THE WORST: CURRENT RECESSION ODDS 14.5%

Don’t forget May 17 is the NYSE stock exchange birth (May 17, 1792). Come join our celebration: http://www.afund.com/nyconf2001.html.

Should Alan not lower rates next week, his last critical market moving opportunity {Bullet 5/6], markets will react very negatively.  Should he lower .50 (not advisable), we will see too much inflation down the road, although a short term market positive. Our recommendation is to lower it by .25 basis points. This leaves room for further cuts if/as needed and will reassure markets and also limit future inflation to “tolerable” levels. In this case, we plan to buy for the long term (June! J).

Cosmically, this pre-FOMC week is busy:  May 6 Jupiter opposite Pluto, May 7 Full Moon, May 10 Neptune SR and May 11 Mars SR. I promise traders will NOT in the least.
Current Trading Strategy remains buy pullbacks and sell, not buy, breakouts.
We will be giving investing NEW 2002 investing strategies later this month.

KEYDATES:        May 7, 10, 11, 15
DJIA:           Buy <10800; Sell over 11,000
NASDAQ:        2200 Floor/Ceiling testing
GOLD:            Trading buy

2.  One of the obvious beneficiaries of the Jupiter/Saturn in Taurus last year were homebuilders.  While many have gone up 100%, they are still likely to remain strong given Jupiter’s entry into Cancer.  Our current two favorites are CTX and PHM.  We consider both long term value buys circa 40 with a 12 month target of 50-52+, even with our projected economic slowdown.

3. The Economist believes that the Australian and New Zealand currencies are undervalued as much as 40% based upon the "Big Mac index", which compares the cost of a McDonald's hamburger to a country's exchange rate. The index uses the base price of $A3 for a Big Mac, [$US1.52], while the cost of a US Big Mac is $US2.54. NZ economy (relatively) as well as its land and people are wonderful and will continue to expand. Unfortunately it is too small for us to consider. Australia becomes of more interest in 2002, and perhaps given its cheap Big Mac’s should consider nibbling as soon as this Fall. We currently watch BHP, FOSTERS (FBWGY) and Land-lease (LLC.AX). While Sex.com is hot for listing, this Victorian Internet company prospective IPO is not on our watch list. The company operates an Internet directory for adult services which attracts only 70,000 visitors a month.  Company chairman David de Greenslaw is confident that sex.com.au will not suffer the same fate as many failed "dotcom" companies. I am not.

icollectors and Superior Galleries of Beverly Hills have announced their Spring 2001 Space Memorabilia Auction that includes the Russian Soyuz TM-26 Descent Capsule, the only U.S/Mir spacecraft ever offered for sale at auction. The Museum of Flying in Santa Monica, Ca on May 5 and 6 will be open to a worldwide audience for bidding on the Internet.  While we are fully prepared to upgrade the Russian markets in 2002/2003 upon sufficient market rule of law, this promising auction is not enough. We know that the European Aeronautic Defense and Space Company and the Russian Aeronautics and Space Agency [RASA] will pool resources on several projects. We know that Boeing and RASA will expand aerospace cooperation and that Boeing already employs over 600 Russian designers, programmers and researchers in Russia. Finally: we are aware that China plans to launch its first space telescope, or the Chinese version of Hubble, into orbit in 2005. As investors that seems too long a wait. We still consider Russia a second world avoid along with China in 2001.

4. “Best definition of a bear market I know of is "in a bear market support levels don't work, but resistance levels do"!
Nick Glydon
HW: Great definition, and in a roaring bull market the reverse is also true

"Markets like to climb a wall of worry."
Peter Chandler, senior VP, Canaccord Capital
HW: Late Spring seems a good time to go mountain climbing.

“There’s still a lot of buying to be done before this is over.”
Mace Blicksilver, Marblehead Asset Management
HW: Yes, most definitely, but from what base is the question: 2000 or 2200 Nasdaq and 10,384 or 10,550 DJIA?

"There is a 50 percent chance the Tokyo Stock Exchange's Nikkei index will fall [from just under 14,000 last week] to 12,000 by the autumn. If that happens, and if Koizumi is still around by then, we can expect some real action on the restructuring front."
Hironari Nozaki, banking analyst,  ABN Amro Securities
HW:  If that happens, we will be buying again, only this time with both hands wide open.

5. Jupiter and Saturn are being offered by Tiscali Voltrade, Tiscali World Online's financial portal in Italy.  We invite you to visit the web site at www.bluemobile.voltrade.it to see our European VPM performance, investment philosophy, and professional profile.

6.  READER: Your Thurs a.m. Market Commentary would not play on realPlayer. It just says... connecting, but never connects.
HW: Given that ABS has had some recent website recording problems, our Thursday morning commentary will now have a backup site: http://www.afund.com/afund.rm which can be reached from our Weekly Trading section whenever ABS is down.

READER: Do you think “Cisco” might bounce back?  It’s up 25% from the disaster in March.
HW:  Yes, 20+ seems likely this year, even though that is slightly overvalued.  Unfortunately, like ATT, we bought far too early. Csco should be a core long term technology holding that we will accumulate on weakness over time..

READER: What is your current investment advice on MOT, T, and LU ?...I bought them last Oct. as suggested.
HW: Currently we are holding all three as we did not take the quick trading profits those buys gave.  We think Lucent will go to 14, Motorola to 18 and T to 25. At that point, we will re-evaluate.  Of the three, only Motorola is likely to be held into 2002. However, we may consider selling some of these stocks in about two weeks depending on genera market conditions.

READER: In your latest WSNW you said IHI was moving out of the CDNX and the price would probably go up as a result.  Where would it move to, and why would that help the share price?
HW: Most likely Toronto, although Nasdaq is a possibility.  It would help, as Toronto and Nasdaq are “real” exchange where prices go UP if there are more buyers than sellers and down if there are more sellers than buyers.  The history of many CDNX stocks has too often been unidirectional: sell and short.

READER: Thanks for prior tips on IBM. I sold that and made some money. Plan to buy it again when it goes down again maybe May, maybe August.
HW: We plan on rebuying when 106 (Value) or better if we can.

READER: You mentioned you may be buying gold Friday.  Do you mean stocks or futures, and how quick a trade?
HW: Either. Quick- a few days.

READER: Do you think this current tech rally has enough oomph to carry it back to 2800 on NASDAQ where it peaked in January?
HW: At this moment it seems this would happen ONLY if Alan cuts rates .50 basis points next week (which is not my current bet).  Circa 2500 we either take profits or put stops in.
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PAST WALL STREET NEXT WEEK REPORTS
Thursday, listen to our ABS radio program TRADINGBY THE STARS.
(c) 2001 All rights reserved. TheAstrologersFund "Always a Stellar Performance"
wsnw@Afund.com 212/949-7211 Fax 212/949-7274 370 Lexington Avenue, Suite 416 New York, N.Y. 10017-6503
Author: INVESTING BY THE STARS, THE STUDY OF ASTROLOGY,TRADING BY THE STARS (01)
May 17,2001 Ninth Annual Astrology & Stock MarketConference NYC 
DISCLAIMER: PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE FORECASTING ACCURACY OR PROFITABLE TRADING RESULTS.
The Astrologers Fund Inc. Accepts No Liability Whatsoever ForAny Loss Arising From Any Use Of Its Report OrIt's Contents. The AstrologersFund Inc. Or Its Clients Usually Holds Positions In The Stocks and/or MarketInstruments Mentioned And May Buy Or Sell At Any Time Without Notice dependingon market conditions and personal financialconditions. This InformationIs In No Way A Representation To Buy Or SellSecurities, Bonds, OptionsOr Futures. This information is not intended tobe used as the sole basisof any investment decisions, nor should it be construedas advice designedto meet the investment needs of any particular investor.
ALWAYS CHECK WITH YOUR LICENSED FINANCIAL PLANNEROR BROKER BEFORE BUYING OR SELLING ON THE RECOMMENDATIONS OF THE ASTROLOGERSFUND Inc.
* We will be reporting on Cancall (O.CCCA) aka VuScreennext month. This is a company that I own  2 million shares (free)with 10million additional shares optioned at .02. I have also bought inthe openmarket for clients and myself. Naturally I am MOST eager to seethem becomeVERY successful.
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